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Located in Asia, India is the largest rice exporter and second largest rice producer in the world. The country exports different varieties of rice (both basmati and non-basmati) to 150 countries around the world and with that shares a mammoth 40% share in the global rice trade. <br>
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India’s Export Ban Pushes Global Rice Prices To Nearly 12 India’s Export Ban Pushes Global Rice Prices To Nearly 12- -Year High Year High Located in Asia, India is the largest rice exporter and second largest rice producer in the world. The country exports different varieties of rice (both basmati and non-basmati) to 150+ countries around the world and with that shares a mammoth 40% share in the global rice trade. These statements clearly highlight India’s significance in the global rice trade and any disruptions in rice supply from India is bound to raise prices of the staple and difficulties for countries dependent upon India for their rice needs and similar has been the case this time around. The Government of India (GOI)’s move to restrict non-basmati white rice exports has led to disruptions in the supply chain and consequently have pushed global rice prices to nearly 12 year high. The Background The Background Rice is a water-intensive crop and favorable climatic conditions (monsoon rains) help the Asian nation harvest bumper paddy crops and export bulk rice to countries around the world. However, things have been different this time around. For most part of the monsoon season, India witnessed a rainfall deficit. According to the reports, there has been a 40% rain deficit in India this year. To make matters worse, when it started raining, it rained heavily. Late but heavy monsoon rains damaged paddy crops in the Punjab and Haryana belt and as a result, the prices of the grain skyrocketed in the domestic markets of the country. It was the price-rise that prompted the Government of India (GOI) to impose restrictions on rice exports to stabilize domestic prices.
Facts and Figures Facts and Figures India’s non-basmati white rice export ban has raised difficulties for several countries as they continue to struggle to source the staple for their domestic rice needs. Disruptions in rice supply from India, has also led to rise in global rice prices. A look at data, reveal the same. United Nations’ Food and Agriculture Organization’s All-Rice Price Index (with a base year value of 100 for 2014-2016) rose to reach 129.7 points in July 2023, up 19.6 per cent from its level a year ago and the highest since September 2011. The year-on-year rise was even higher at 24.4 per cent for Indica Index (the rice varieties that are grown in the subcontinent) as that touched 135.4 points in July. The B The Bottom Line ottom Line India is highly prominent in the global rice trade and any restrictions on rice exports from India is bound to raise difficulties for countries dependent upon it for rice imports and skyrocket rice prices in the global grain market and this has been the case this time around as well. India’s non-basmati white rice export ban drove up global rice prices and consequently, the prices are ruling at nearly 12 year high. If you are a Rice Exporter looking to export bulk rice or are a rice importer looking to import bulk rice, then Tradologie.com is the platform for you. Tradologie has over 600,000 verified buyers and 70,000+ verified suppliers in its network and through the platform, you can connect and conduct bulk trade of food and agro-commodities with ease. To register as a seller, click here. To register as a buyer, click here. To stay updated with the recent happenings of the agro-trade industry, do follow Tradologie across all social media channels.
